First Round: Complex finish

First round appreciates a nice glass of Burgundy now and again (doesn’t everyone?). So it was interested to learn that even it could participate in the private equity-backed IPO of French vineyard Domaine Chanzy – and get deep discounts on its various varietals, to boot. 

In 2012, Olma Fund, a luxury goods-focused firm helmed by private equity veteran Philippe Der Megreditchian, led a private consortium to buy Domaine Chanzy out of bankruptcy, reportedly paying €5 million at the time and going on to strengthen and expand the winery’s business.

It is now preparing to list Domaine Chanzy on London’s AIM exchange under the ticker ‘WINE’ in a series of firsts, starting with the ability for retail investors to get in on the action for less than the price of a bottle of wine. Part of the £1.9 million minimum it aims to raise from the offering will be sourced via UK crowdfunding platform Seedrs, where investors of any size will be able to invest as little as £10; those who purchase a minimum of 1,000 shares (£1,200) will get discounts of up to 55 percent on Domaine Chanzy’s wines.

It’s said to be the first time a company is using crowdfunding for its IPO, will be the first French company listed on the AIM exchange and the first French wine specialist with a London listing. It may also be the first time investors will be actively encouraged to quite literally drink all their profits away.

At press time, according to Seedr, just under half the target amount had been raised. Here’s to hoping the deal doesn’t turn out corked.